Marsh and UK Government team up on cyber risk

Marsh has teamed up with the UK government for new efforts to help firms cope with cyber risk.  A jointly-published report says 81 percent of British businesses and 60 percent of small companies have suffered a security breach from cyber in the last year.

U.K. Cyber Security: The Role of Insurance in Managing and Mitigating the Risk notes that cyber is a fast-growing sector within the insurance industry. “The vast majority of the premium income derives from U.S.-domiciled companies (approximately £1.5 billion), due to the fact the U.S. has been the first market to adopt stand-alone cyber insurance products with solutions centred around data breaches. Insurers now expect increased interest from other countries as awareness and regulation drive demand. The premium income from UK companies is estimated at 1.5 percent of the global market (around £20 million-£25 million).”

The report also points out that half of the companies interviewed didn’t even know that insurance was available to deal with this risk.

Among its recommendations, the report suggests that “brokers should provide firms with a cyber assurance statement, giving the board comfort on the completeness of their insurance with respect to cyber.”

 

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Transcontinental Media G.P.